Sonoco has signed a definitive agreement to acquire Weidenhammer Packaging Group, Europe's leading provider of composite cans along with composite drums and rigid plastic containers, for AU$443 million, in cash. [The final consideration is subject to a normal adjustment of net working capital.]
Family-owned company, Weidenhammer Packaging Group, has its headquarters in Hockenheim, Germany. It operates 13 production facilities, including five in Germany, along with individual plants in Belgium, France, Greece, The Netherlands, United Kingdom, United States, Chile and Russia, and has 1,100 employees.
It produces composite cans, drums and luxury tubes, and unique rigid plastic containers using state-of-the-art thin-walled injection moulding technology with modern in-mould labelling.
Its products are sold for processed foods, powdered beverages, tobacco, confectionery, personal care, pet food, pharmaceuticals and home and garden products.
Adding Weidenhammer Packaging will take Sonoco's global consumer packaging and services business to approximately AU$3.24 billion in annual sales or approximately 53% of the company's combined revenue of approximately AU$6.1 billion. In addition, the combination is expected to increase Sonoco's net sales in Europe to approximately 21% of total sales.
Weidenhammer Packaging's projected 2014 sales are expected to be AU$378 million, with projected EBITDA expected to be AU$65 million.
"Combining Weidenhammer's state-of-the-art production and technological capability places Sonoco in a leading position to provide its global consumer product customers with unparalleled packaging expertise throughout North America and Europe, and creates a strong presence in the emerging markets of Southeast Asia, China, Eastern Europe and South America," Jack Sanders, Sonoco president and chief executive officer, commented.
Ralf Weidenhammer, chief executive officer, Weidenhammer Packaging Group, added, "Sonoco and Weidenhammer bring 175 years of combined consumer packaging innovation and expertise to our combined customers. After almost 60 years of successful business operations, we are convinced that the merger with Sonoco will open up new opportunities for our business, our customers and partners, as well as to our employees."
The acquisition is subject to governmental regulatory review and is expected to close in the fourth quarter of 2014.
